Certified Public Accountant Governmental & Not-for-Profit Accounting

Question 1

Which organization establishes GAAP for state and local governments in the United States?

Accepted Answer

GASB

Answer

FASB

Answer

AICPA

Answer

SEC

Question 2

Under governmental accounting, what is the primary measurement focus for governmental funds?

Accepted Answer

Current financial resources

Answer

Economic resources

Answer

Capital maintenance

Answer

Net income

Question 3

Which fund type is used to account for a government's general operations and services?

Accepted Answer

General Fund

Answer

Special Revenue Fund

Answer

Capital Projects Fund

Answer

Enterprise Fund

Question 4

What basis of accounting is used in governmental fund financial statements?

Accepted Answer

Modified accrual basis

Answer

Full accrual basis

Answer

Cash basis

Answer

Tax basis

Question 5

Under GASB standards, which of the following is classified as a fiduciary fund?

Accepted Answer

Pension Trust Fund

Answer

Enterprise Fund

Answer

Special Revenue Fund

Answer

Internal Service Fund

Question 6

In not-for-profit accounting under FASB ASC 958, which net asset classification replaced the old 'temporarily restricted' category?

Accepted Answer

Net assets with donor restrictions

Answer

Net assets without donor restrictions

Answer

Permanently restricted net assets

Answer

Board-designated net assets

Question 7

Which financial statement is unique to government-wide reporting and not found in individual fund financial statements?

Accepted Answer

Statement of Net Position

Answer

Statement of Cash Flows

Answer

Balance Sheet

Answer

Statement of Revenues, Expenditures, and Changes in Fund Balance